This document discusses changes to US export and import regulations and processes. It notes that US agencies are now requiring more detailed line-item data for imports and exports, to more closely match import requirements. Several agencies have begun accepting export data through the Automated Commercial Environment (ACE) system. Shippers are at risk of fines if export filings are not updated for any rerouting or other changes. Options discussed to avoid penalties include using a consultant or managed service provider to help with export classification, licensing, and filing.

2. June 27, 2017

3. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
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4. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
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5. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

6. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Source: CBP.gov (*CPSC is not currently accepting CPSC data; **Effective 8/1/2017, CBP has stated that paper or DIS filings will no longer be accepted; ***FWS Pilot has been suspended; ****See CATAIR on TTB Filing Requirements)

7. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Source: CBP.gov (*CPSC is not currently accepting CPSC data; **Effective 8/1/2017, CBP has stated that paper or DIS filings will no longer be accepted; ***FWS Pilot has been suspended;
****See CATAIR on TTB Filing Requirements)

8. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
• EPA – FINAL RULE EFFECTIVE 5/18/2017
• Four programs, TSCA, VNE, ODS, Pesticides
• Hybrid processing continue
• TTB – EFFECTIVE 6/22/2017
• No hybrid processing
• DEA – EFFECTIVE 8/1/2017
• No hybrid processing (PGA line data required; paper or DIS filings no longer
accepted (Source – CBP.gov)
• FCC – DATA SUBMISSION MORATORIUM EXTENDED TO 9/30/2017

9. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
FISH AND WILDLIFE SERVICE
• ACE PILOT SUSPENDED IN JANUARY
• RECONFIGURING ENTIRE IMPORT PROCESS
CONSUMER PRODUCT SAFETY COMMISSION
• ALPHA PILOT ENDED 12/31, PATH FORWARD BEING ESTABLISHED
OFFICE MARINE CONSERVATION
• TRACEABILITY INFORMATION
NMFS
• TRACEABILITY BEING ESTABLISHED
NEW FDA PROGRAMS
• FSVP
• LED REPORTING

10. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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• COLLECTIONS LIQUIDATION
• NAFTA DUTY DEFERRAL
• RECONCILIATION
• DUTY DRAWBACK
• Automation of the current process
• Does not include the duty drawback changes contained in TFTEA
• WHAT CONTINUES TO REMAIN:
• E214 (FTZ ADMISSION) TRANSMISSION – LAST FUNCTIONALITY IN ACS
• MISSING FUNCTIONALITY
• Trade continues to push for “missing core” functionality

11. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
PROGRESS OF THE ACE TRANSITION
• MOST GROUND HAS BEEN COVERED IN THE PAST 18 MONTHS
• VARIOUS ENTRY TYPES NOW ACCEPTED
• VARIOUS PGA CONVERSIONS
• ALSO POST ENTRY TRANSACTIONS, SET FOR JULY 8TH (FROM FEBRUARY)
– POSTPONED
• VERY FEW OTHER ENTRY TYPES REMAINING
• TAKE AWAY: ENJOY THE EFFICIENCIES, BUT REMAIN DILIGENT TO STAYING ACCURATE AND
UP TO DATE WITH YOUR PARTS CATALOGS AND KEEP YOUR PARTS DATABASE AND OTHER
COMPLIANCE TOOLS

12. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
A PARADIGM SHIFT
• Old Process: Header level information capture
• New Process: Line item detail
• Closely mimics what data is captured for import

13. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Nine PGAs now have
export data that
leverage the PGA
Message Set

14. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
CBP AND PGA UNPRECEDENTED ACCESS TO EXPORT DATA
 Increased potential for targeting, resulting in additional export-related holds
TIMELINESS OF EEI, ESPECIALLY FOR PGA DATA
GREATER COMPLIANCE FOCUS ON EXPORTS

15. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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WHERE EACH EEI FILING THAT IS NOT UPDATED CUSTOMER IS AT RISK OF $10,000 FINE PER MISFILING
Exporter Flight #1
Export filing
Shipment
information
$2,500+#1
Re-route
#1
Destination
Forwarder
#1
Consultant/
Managed
Services
Provider
Export
parts
database
and SOP
DOC
State Dept
Flight #2
Re-route
#2
DestinationForwarder
#2
$2,500+#2
B A
C
Export filing
Export
filing
Export
filing

16. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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OPTIONS FOR MANAGING THESE PROCESSES TO AVOID FINES OR LOSS OF EXPORT PRIVILEGES
Multiple infractions
risk multiple
penalties
Security
Screening
Consultant/
Managed
Services
Provider
Export
parts &
screening
database
License &
denied party
determination
License
tracking
License &
submission
Exporter Forwarder Flight #1 Destination
DOC
State Dept
B
A

17. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
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Increased visibility
Enforcement up
Delays/penalties
Poor customer satisfaction
Lower margins

18. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
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Increased visibility
Enforcement up
Delays/penalties
Poor customer satisfaction
Lower margins

19. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
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Increased visibility
Enforcement up
Delays/penalties
Poor customer satisfaction
Lower margins

20. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

21. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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22. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Answer
choice Answers Percentages
A More delays 24%
B About the same 57%
C Fewer delays 14%

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© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 23
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